The Buffett Indicator: What It Measures and When It Fails
The Buffett Indicator compares total stock market value to GDP. Here is how the formula works, historical valuation tiers, and why the ratio can mislead.
Market Education
Learn how stocks, bonds and capital markets work. Explore plain-English explanations, worked examples and charts, then follow related coverage to connect market concepts with current events. Find your way around ECMSource.
Asset-Backed Securities (ABS) Explained: Structure & Tranches
Learn how asset-backed securities (ABS) turn loans into liquid bonds, how tranche waterfalls work, and how credit enhancement protects senior noteholders.
How Automated Market Makers Work: AMMs and Impermanent Loss
Learn how automated market makers use liquidity pools and constant product formulas to price trades, and how to calculate impermanent loss.
Stock Index Futures Explained: Fair Value, Basis, and Pricing
Learn how stock index futures work, how fair value and basis are calculated using the cost-of-carry model, and how premarket trading forecasts market opens.
Securities Lending Explained: How Share Loans & Rebates Work
Understand how securities lending works, how cash collateral is reinvested, how rebate rates are calculated, and what hard-to-borrow specials cost borrowers.
The Prime Rate Explained: How It Is Set and What It Moves
Learn what the prime rate is, how banks set it 300 basis points above the Fed funds rate, and how it directly affects credit cards, HELOCs, and loans.
J.B. Hunt Plunges 13%: $35M Cost Shock Triggers Q3 Profit Warning
J.B. Hunt shares sank 13.3% on Sept 16, 2026 after management warned Q3 profit will drop 5% to 10% sequentially due to diesel costs and driver onboarding.
Fed Floor System: How IORB and ON RRP Set Interest Rates
Discover how the Federal Reserve’s floor system controls interest rates using administered rates like IORB, the ON RRP facility, and the discount window.
Price-Weighted vs. Market-Cap-Weighted: How Stock Indices Work
Learn how price-weighted and market-cap-weighted indices work, how the Dow Divisor functions, worked math examples, and the key distortions of each method.
Fed Funds vs. 10-Year Treasury: Why Long-Term Rates Diverge
Why do 10-year Treasury yields move opposite to Fed rate cuts? Learn how the Fed sets overnight rates while markets price inflation, growth, and term premium.